Meanwhile, German and French benchmark indices lost over 1 percent each while Spain's Ibex dropped over 2 percent after data showed the euro zone economy grew a quarterly 0.2 percent in the first three months of the year.

Indian shares pared gains following a 4 percent rally earlier in the session but the benchmark index still soared to a fresh record high after early vote counting in the country's five-week long general election indicated a landslide victory for Modi's pro-business Bharatiya Janata Party (BJP).

The rupee strengthened over 1 percent to an eight-month high against the dollar.

Manoj Joshi, Distinguished Fellow at Observer Research Foundation, says an absolute majority for the Bharatiya Janata Party (BJP) coalition will be a 'historic achievement.'

Nikkei drops 1.4%

Japanese shares fell to an over one-week low, extending losses into a third straight session. For the week, the benchmark Nikkei index was the region's sole loser, down 0.7 percent - its third weekly loss in a month.

Meanwhile, the yen continued to extend gains after hitting a more than one-month high of 101.3 per dollar in the previous session, which weighed on exporters. Among the biggest losers, Sony lost 3 percent after closing down 6 percent in the previous session while index heavyweight SoftBank closed down 3.5 percent.

Defense-related shares were in focus after Prime Minister Abe called for a reinterpretation of the country's pacifist constitution to allow the use of collective self defense.Mitsubishi Heavy and Kawasaki Heavy Industries lost nearly 2 and 1.6 percent, respectively.

On the economic front, revised industrial output for March rose 1.4 percent from February.

China's benchmark Shanghai Composite managed to end just above the flatline after hitting a one-week low earlier in the session. The index was little changed after data showed foreign direct investment rose an annual 3.4 percent in April.

Financials were in focus on news that China is relaxing rules for securities companies to allow them to expand their business and offer new products. Citic Securities eased 2.5 percent while China Everbright Securities was flat.

South Korean shares erased losses to close higher, trading within sight of Wednesday's 2014 high. Losses in blue-chip stocks weighed down the benchmark Kospi, with a 2 percent decline in Hyundai Motor and a 1.8 percent loss for Kia Motors.